The Caterer
Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

Economic slowdown could force drop in room rates

24 November 2008 by

Hoteliers will be forced to cut room rates as the looming recession bites, leading industry figures have predicted.

Experts have warned that cutting room rates is a dangerous move as moving prices back up can prove very difficult, but hoteliers at the autumn St Julian's Scholar debate at the Hyatt Regency London hotel on Friday said it was "inevitable".

Andrew McKenzie, managing director at The Vineyard at Stockcross and Caterer's Hotelier of the Year 2008, added: "The landscape of this recession is different from anything I've seen before.

"I'd like to think that our hotels, which operate in the four and five-star sectors, will maintain their rates, but I doubt it will happen. Consumers out there will start to cherry pick low room rates and we will miss out."

But Peter Hancock, chief executive of Pride of Britain, argued that hoteliers should focus on value for money.

"We don't want customers to think we are giving hotel rooms away," he said. "In the last recession people thought they could come into a hotel and barter for a room. The last thing we want is for that to happen again.

"People aren't looking for cheapness at the top end - they can get that elsewhere," he added. "What they will continue to be looking for is value for money."

UK room rates fall for first time since August 2003>>

Eton Collection keeps rates firm as bookings fall>>

Hoteliers told not to slash rates in response to slowdown>>

UK hoteliers must look for creative ways to cut costs>>

Travelodge considers job cuts to fund price war>>

By Tom Vaughan

E-mail your comments to Tom Vaughan here.

Caterersearch.com jobs
Looking for a new job? Find your next hotel job here with Caterersearch.com jobs

The Caterer Blog](http://www.caterersearch.com/blogs/catering-news-blog/) Catch up with more news and gossip on the Caterer Blog here
[Newsletters For the latest hospitality news, sign up for our e-mail newsletters.
Â
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.

close

Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking